In a typical financial transaction, a payor transfers funds to a payee through one or more financial institutions. Generally, the transaction involves a payor who submits a request to his or her bank to transfer a specific amount of funds to a payee's account. The payor's bank debits the payor's account and contacts the payee's bank. The payee's bank then credits the payee's account with funds from the payor's account. Finally, the funds are made available to the payee for withdrawal. However, this process usually takes several days or weeks to complete. In other words, the funds are not available to the payee for an extended period of time after the transaction has been initiated. The typical funds transfer process unnecessarily delays business transactions. This is particularly fatal for Internet businesses where speed and availability of funds are essential. Another problem arises when the transaction is not executed properly due to security problems or errors in entering multiple identification codes. These and related problems further prolong the transaction process and delay fund availability.
International transfer of funds is especially complicated because of various government regulations and the use of different currencies. International transfer of funds requires the payor to obtain the relevant exchange rate in order to calculate the equivalent value of the foreign currency. The rate of exchange is not always available to the payor. This lack of important information generally delays international funds transfers.
The Internet has provided numerous opportunities for purchasers to browse and shop on line. In particular, the Internet has made buying and selling goods, information and services increasingly easy, convenient and affordable. The opportunities to buy and sell over the Internet are vast and plentiful, however, a system and method of payment that complements the speed and convenience of the Internet has yet to be implemented.
These and other drawbacks exist with current systems.